fii-dii-client-pro derivatives open interest

fii-dii-client-pro derivatives open interest

How this data is important to retail traders? If you want to set up a new business you research about your competitor, you search for the winners and losers, hows the industry works, how do I succeed in this industry, what mistake do I need to avoid. If you are going to any industry as a businessman you research it but why you are not doing this research about trading. Retail trader jumps into trading without any business knowledge and research works. 

Our Automated excel sheet for nifty options

Advance nifty option trading automated excel sheet with back Testing 

Importance of FII-DII-CLIENT-PRO open interest data

1. The retail trader is not aware of the positions of professional traders. 
2. Professional traders drive the market in the direction where they can get the maximum profit. 
3. Open interest is the total number of outstanding future and option contracts that have open positions.
4.  So if they are holding the positions it will reflect in open interest data.
5. Higher the open interest higher the risk or either for FII-DII-PRO
6. The key point is Client always have highest positions but they have limited capital and less risk-taking abilities
7. Focus on the second-highest open interest position they have greater risk and deploy large money as compared to others.
8. FII-DII always trade against each other
9. Therefore the position of PRO is very critical 
10. If the position if FII and PRO is in the same direction and against the client position
11. The market will move according to  FII and PRO positions. They are controlling the market 

How to analyze the data of open interest of FII-DII-CLIENT-PRO

1. We update this excel daily. Download the excel sheet
2. There are 4 client types: Client-DII-FII-PRO
3. There are different position types these are Future Index Long, Future Index Short, Future Stock Long, Future Stock Short, Options Index Call Long, Options Index Put Long, Options Index Call Short, Options Index Put Short, Options Stock Call Long, Options Stock Put Long, Options Stock Call Short.
4. Retail traders must analyze the data and understand it so that retail traders can identify the position if FII 
5. These all position are interconnected with each other
6. Focus on the highest open interest
7. Find the total amount at risk 
8. E.g. FII trade Options Index Put Long they think the market will move down also they will hedge their positions with Future Index Long or with Options Index Call Short to reduce the price of the option
9. Why they hedge with the future because the premium of the future will be Increase or decrease very fast.
10. The cost of buying the put option is very less if the market starts moving in the opposite direction they will still earn money from the index future position.
11. Try to build the logic with the data
12. Ask yourself why there is so high open interest on put side or call side
13. What happens to the data when the market moves 150 points or 100 points
14. Build the trading system based upon your logic and learning from the data
15. Backtest  the data and paper trade 
16. Trade using risk and reward ratio and position size 
17. You will start to earn from the stock market or at least stop losing the money in the market
18. Before start trading, I strongly recommend you read this blog or if you are not familiar with the stock market principle read these blogs.

• The truth of the brokerage industry, Trading expert & retail traders
• 
  
• Stock market educators or institute vs retail traders
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• How professional traders trade?
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• Working principle of stock market 
• 
  
• What causes bull and bear market